The Opposition in parliament said during a debate on four bills from the fifth round of the tax reform that the reform would benefit the rich and increase inequalities in society.

Social Democrat Pedja Grbin said that the tax reform jeopardised the functioning of local government units and increased inequalities.

“The reform gives money only to the richest. Those with salaries of between 5,000 and 6,000 kuna will get crumbs while those with above-average salaries will get an extra HRK 1,000 or more,” said Grbin, requesting a break on behalf of his party group.

He noted that the income of public authorities would be reduced, which would hamper their work in the current health and economic crisis.

GLAS MP Anka Mrak TAritas said that the tax reform would leave local government units wihtout two billion kuna and called for a true reform of the system of local government.

Hrvoje Zekanovic of HRAST said that the tax reform would neither make life for citizens easier nor facilitate entrepreneurs’ operations.

He stressed that entrepreneurs were burdened by about 600 parafiscal levies which nobody was considering to abolish.

Grozdana Peric of the ruling HDZ party disagreed with the Opposition’s assessments, stressing that despite economic problems the government was trying to take care of citizens’ income and looking for ways to reduce the tax burden on businesses. She recalled in that context an increase of the nontaxable income to HRK 4,000 and an increase of the minimum wage.

The parliament is debating four tax reform bills which envisage cutting income tax from 24 to 20% and from 36 to 30% as well as profit tax from 12 to 10% for enterprises which make up to HRK 7.5 million a year. The government sent to parliament for first reading bills of amendments to the laws on income tax, profit tax, VAT, and fiscalised cash transactions.